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Health and Human Services Agency recommending the Board:
1) Approve and authorize the Chair to sign multiple budget transfer requests for the Fiscal Year (FY) 2020-21 budget (4/5 vote required), as follows:
a) Budget Transfer Request 1: Community Services Low Income Energy Assistance and Weatherization Program is requesting to use $85,000 of salary savings to be used for $15,000 a replacement Insulation Blower, and $70,000 printing services for outreach.
b) Budget Transfer Request 2: Increase of $270,000 to Social Services CalWORKs MOE to fund cash aide to CalWORKs clients.
c) Budget Transfer Request 3: Community Services, Emergency Solutions Grant increase of $719,000.
d) Budget Transfer Request 4: Community Services, Area on Aging (AAA) Senior Nutrition received a one-time funding increase of $149,000.
e) Budget Transfer Request 5: Community Services Public Housing Authority increase of $270,000 based on projected activity in FY 2020-21.
f) Budget Transfer Request 6: Community Services increase of $10,000 due to higher than anticipated current year allocation - this is pass thru funding to Motherlode Rehabilitation Enterprises, Inc.; and
g) Budget Transfer Request 7: Public Health transfer of the remaining special revenue fund balance to Emergency Medical Services (EMS) of $1.00 to transfer the $0.13 that remains in the HHSA account; and
2) Approve the addition of one (1) insulation blower fixed asset to the FY 2020-21 fixed asset list at a cost of $15,000.
FUNDING: A) Low Income Energy Assistance and Weatherization Federal and State funding; B) Social Services CalWORKs MOE realignment funding; C) Federal Funding administered by the State of California Department of Housing and Community Development, Emergency Solutions Grant Program; D) Community Services, Area on Aging (AAA) Senior Nutrition Federal and State funding; E) Community Services Public Housing Authority Federal funding; and F) Pass-through State funding from California Department of Housing and Community Development; G) Maddy EMS Fund court penalties.
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DISCUSSION / BACKGROUND:
The Health and Human Services Agency (HHSA) has a complex and diverse program mix funded by an equally diverse funding structure: grants, State, Federal, numerous realignment accounts, fees for services, and donations. The HHSA fiscal year (FY) 2020-21 Recommended Budget submitted in February 2020 was a projection based on assumptions developed from historical trends, and anticipated funding. After the budget was submitted and the fiscal year began, new information became available such as: the final State budget, grant awards, ending fund balances, and roll over grant funding.
The following budget transfer requests are being submitted to address items that have been identified as revenue and appropriation issues in FY 2020-21.
A) BUDGET TRANSFER REQUEST #1:
Budget Request #1 is requesting to move savings from salaries to printing services and Fixed Assets due to an unexpected increase in cost of printing, as well as a replacement of an insulation blower for insulating attics for low income Weatherization Program recipients utilizing federal funding.
B) BUDGET TRANSFER REQUEST #2:
CalWORKS Maintenance of Effort revenue for cash assistance is coming in higher than budgeted with no increased cost over budget. Therefore, the increased revenue will be offset with anticipated decreased federal revenue, with no impact to General Fund.
C) BUDGET TRANSFER REQUEST #3:
On June 30, 2020, the Board of Supervisors adopted Resolution 109-2020 (File ID: 20-0768, Agenda No. 21) authorizing the Director of HHSA to apply for, and execute any award documents for the Emergency Solutions Grant (ESG-CV) for the Housing and Homelessness Program in response to the Covid-19 pandemic. HHSA received the grant award in the amount of $719,000, for the term January 1, 2020 thru September 30, 2022.
D) BUDGET TRANSFER REQUEST #4:
The Senior Nutrition program has received one-time funding to support the Senior Nutrition program. This budget transfer request will increase State revenues and increase Food and Food Products.
E) BUDGET TRANSFER REQUEST #5:
The Community Services Division Public Housing Authority is requesting to increase federal revenue and appropriations for the Support and Care of Persons due to higher than anticipated revenue and expenditure projections.
F) BUDGET TRANSFER REQUEST #6:
Since 1981, HHSA has acted as Fiscal Intermediary for pass-through funding for Mother Lode Rehabilitation Enterprises, Inc., Rental Housing Construction program. This increase is the result of an annual amendment to that Agreement.
G) BUDGET TRANSFER REQUEST #7:
Public Health transfer of the remaining special revenue fund balance to CAO: Emergency Medical Services Agency & Emergency Preparedness and Response Division (EMS & EP&R): The budget request is to increase fund balance and appropriations to transfer $1.00 to Emergency Medical Services (EMS) Special Revenue Fund (SRF). This is to enable the final transfer of $0.13 that remains in the HHSA account to CAO: Emergency Medical Services Agency & Emergency Preparedness and Response Division account that was not included in the current budget.
ALTERNATIVES:
The Board could decline to approve and authorized any of the any seven (7) budget transfers, in which case that Budget Transfer Request(s) would not be processed, and the mid-year budget for Fiscal Year 2020-21 would remain as initially submitted.
PRIOR BOARD ACTION:
June 30, 2020, 20-0768, ESG-CV Grant.
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
A) Budget Transfer Request #1 decreases Salaries by $85,000 and increases Printing Services by $70,000 and Fixed Assets by $15,000, with no change to Net County Cost.
B) Budget Transfer Request #2 decreases Federal CalWORKS MOE revenue and associated appropriations by $270,000, with no change to Net County Cost.
C) Budget Transfer Request #3 increases revenue and appropriations by $719,000 with no change to Net County Cost.
D) Budget Transfer Request #4 increases both revenue and appropriations in Food and Food Products by $149,138 due to additional one-time State funding for this program. There is no change to Net County Cost.
E) Budget Transfer Request #5 increases both revenue and appropriations for the Support and Care of Persons by $270,000 due to projected revenue being higher than budgeted, with no change to Net County Cost.
F) Budget Transfer Request #6 increases both revenue and appropriations for pass-through funding to M.O.R.E., by $10,000, with no change to Net County Cost.
G) Budget Transfer Request #7 transfers the remaining amount in the EMS Special Revenue Fund in the amount of $1.00, with no change to Net County Cost.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board to obtain signature of Chair on each of the approved Budget Transfer Requests.
2) Clerk of the Board to submit signed Budget Transfer Requests to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT:
Good governance.
CONTACT
Don Semon, Director